Corporate Overview

1
Corporate Overview
Company Confidential
2
Market Dynamics

• Business drivers
• 250 million PCs shipped per year WW
• 60 Desktops, 4 per year
• 40 Laptops, 18 per year
• 150 mm installed base in US
• Source
• 46 million iPods shipped per year WW
• 75 growth in 2006
• 80 mm installed base
• Source
• 5B Computer Accessories Market
• Growing at 10 per year
• Source
• Consumer trends
• Going wireless
• Simplify technology
• Fits my digital lifestyle

3
Our Strategy

• Customer Focus Mobile Consumer
• Product Focus Accessories for Laptop PCs and
  iPod/MP3
• Pricing - 20-100 End User Price
• Value Proposition Smart Made Simple
• Competitive Advantage First to Market with
  Smart Made Simple Products
• Sustained Advantage Customer insight to make
  the call

4
Strategy Execution

• Invest in Product Development
• Strengthen our brand as a consumer brand, improve
  demand generation
• Simplify supply chain, cost reduce GA

5
Sustainability Consumer-Focused Culture
Technology Driven
End User Driven
Channel Driven
6
Differentiation Smart Made Simple

• Smart Thoughtful consumer insights familiar
• Simple Just what they need, and nothing more

Mouse is tallest element in bag!
7
Market Positioning Viable Alternative
8
Global Product Development

• Model for Growth

9
Target Consumer
Kensington will focus on serving the needs of
mobile consumers who use their laptop and MP3
players when traveling, commuting, in the office,
or in the home office.
10
Product Focus and Goals
Power It 1
Play It Top 5

• Target developing 50 60 SPC3 global products
  per year.
• Goal is to average 1M annual revenue
• per new product.

Secure It 1 60
Control It 3
Connect It Top 3
Carry It Top 4
11
Product Philosophy

• Kensington focuses on the Hitchhiker Strategy
  with the objective of moving towards High Road.

12
Development Model Efficient Flexible
Engineering Research
Consumer Insights
Industrial Design
Engineering Development
Manufacturing
Logitech 950 Person RD Center
Risk, Resource
Kensington 40 Person RD Center
Targus No RD
13
Market Timing First to market with Smart Made
Simple products
14
SMS vs. TTM vs. DFM

• Mature Categories Primary goal is Smart Made
  Simple, then first.
• Emerging Categories Primary goal is first to
  market, then SMS.

15
Role of New Product Revenue

• Targeting 25 30 Revenue from New Products
• 20 Core SPC3 Smart Made Simple new products
• gt 5 New/extensions of category
• Organic company growth 12 per year
• - 20 Core SPC3 Smart Made Simple new products
• 5 New/extensions of category
• 12 Market growth
• 8 Geographic
• 7 Distribution

16
Product Resource Tiers

• Tier 1
• gt 2 M annual Global revenue (1M/region)
• Full development team capital investment
• Tier 2
• 1M annual Global revenue
• Minimal development team capital lt 20K
• Tier 3
• gt500K annual Global revenue
• Opportunistic Off-shelf Emerging Markets

Families
Fillers
17
Smart Made Simple

• Deep Dive

18
External examples Smart Made Simple

• Good Grips
• Chuck it

• Google
• Scroll Wheel

19
Differentiation Smart Made Simple

• Smart Thoughtful consumer insights familiar
• Simple Just what they need, and nothing more

Mouse is tallest element in bag!
20
Hierarchy of focus Smart Made Simple

• Primary Secondary Base
• Control People Place Experience
• Connect Experience Place People
• Power Place Experience People
• Play Place Experience People
• Secure Place Experience People
• Carry People Experience Place

21
SlimBlade Collection
Reliable
Sophisticated
Timeless
Performance
Understated
Classic
Thin Is In
Layers of Functionality
All Terrain
22
2008 - 09 Plan

• Building Momentum

23
2008 Strategic Imperatives

• Create core competency around insights into unmet
  consumer needs.
• Define and implement Smart Made Simple line
  strategies across SPC3.
• Deliver product plan on time, on budget, and to
  design objectives.
• Continued improvement of Global Development
  Process.

24
2008 - 09 Product Plans

• Security
• Continue to pursue Slot 2.0 development and OEM
  alignment
• Solve lock consumer usability issue.
• Power
• Improve Lotus line for improved margins and
  reduce returns
• Develop Fusion platform for TSE
• Research home low power device recharging
• Connect
• Evolve Dedicated dock line around Video over USB
• Launch new _at_Home Shared line
• Coordinate market timing for wireless entrance
• Control
• Continued evolution and protection of Ci and Si
  families
• Development for Young Pro user segment
• Explore strategic opportunities to enter the
  Living Room (2009).
• Play
• Evolution of in-car momentum to direct connect
  and Bluetooth solutions
• Explore strategic opportunities to enter the
  Living Room (2009).
• Ergo

25
2008 09 Growth